PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF) (“BGSF”), a growing provider of consulting, managed services, and professional workforce solutions, announced that Beth Garvey has recently been recognized by the Staffing Industry Analysts (SIA) Staffing 100 North America list as one of North America’s most influential staffing leaders for 2024. John Barnett, Chief Financial Officer at BGSF, stated, "Beth Garvey's leadership has been pivotal in shaping BGSF's culture and impact, both within our organi ...

PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF) (“BGSF”), a growing provider of consulting, managed services, and professional workforce solutions, announced it has been named a Workday Partner. Workday (NASDAQ: WDAY) is a leading provider of enterprise cloud applications for finance and human resources. BGSF has consistently demonstrated its commitment to meeting customers' demands for Workday talent. Through a robust network of highly skilled consultants and an in-depth understanding of the Work ...

PLANO, Texas--(BUSINESS WIRE)--BGSF, Inc. (NYSE: BGSF), a leading national provider of workforce solutions, today announced that its Board of Directors has declared a quarterly cash dividend of $0.15 per share of common stock. The dividend is payable on February 27, 2024, to all shareholders of record as of the close of business on February 20, 2024. This marks the 37th consecutive quarterly dividend and based on the yesterday's closing price of the Company’s common stock, the annualized yield is approxima ...

champc Introduction I'm constantly looking for undervalued microcap companies, and recently I came across BGSF (NYSE:BGSF). It’s a US consulting and staffing solutions firm which has been focusing on improving margins over the past few years, and the adjusted TTM EBITDA stands at $23.9 million. BGSF has a dividend yield of $6.3 million and the balance sheet looks strong, with net debt at $66 million on October 1. I’m putting BGSF on my watchlist and my rating on the stock is a speculative buy. Let’s rev ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2023 reached $83.5 million, reflecting a 6.3% increase from the prior-year quarter [8][23] - Adjusted EBITDA for Q3 was $7.9 million, or 9.4% of revenue, showing a slight increase from $7.5 million or 9.3% in Q2 [11][48] - Gross profit margins expanded to 35.9%, up from 35.7% in the prior-year quarter [28] Business Line Data and Key Metrics Changes - The Property Management segment grew revenues by 8.2% in Q3, building on a 34.1% growth in the same quarter last year, resulting in over 42% cumulative growth compared to 2021 [8][23] - The Professional segment's revenues increased by 5%, but organic sales declined by 20.6% compared to the prior-year quarter [27][23] - Professional segment gross margins improved to 33.2%, up 130 basis points due to acquired businesses and a shift away from low-margin IT placements [10] Market Data and Key Metrics Changes - The company is positioned well in a choppy demand environment due to economic uncertainties and high interest rates, with a diversified client base across end markets [6] - The National Apartment Association anticipates approximately 4.3 million new apartments to be built by 2035, which the company plans to leverage for growth [33] Company Strategy and Development Direction - The company aims to grow through both organic and inorganic revenues, focusing on higher value and specialized offerings in both segments [5] - Strategic investments in people, processes, and technology over the last three years have enhanced the company's stability and capabilities [6] - The company plans to continue focusing on strategic initiatives to expand its business and improve profitability [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's prospects, citing significant progress in strategic repositioning and a focus on higher value consulting and managed solutions [14][50] - The company expects the professional segment to stabilize in Q4, despite difficult comparisons, and anticipates normal seasonality in property management [16][52] Other Important Information - The company maintains a disciplined capital allocation strategy, focusing on growth investments, debt paydown, and consistent capital returns to shareholders [31] - The company is in the process of refinancing its credit facility with a group of committed banks [49] Q&A Session Summary Question: How large of a piece is that of the professional segment? - Management noted that the first two months of the quarter were slower, but activity picked up in September, leading to optimism for Q4 [40] Question: Could you give an update on the progress since acquiring Arroyo and Horn? - Management highlighted that the acquisitions have allowed for enhanced offerings and integration, which is expected to drive revenue growth [41][56] Question: What are the trends in wage rates and competition? - Management indicated that there were no significant changes in wage competition noted [46] Question: How many offices are currently open in the Property Management segment? - Management stated that they are operating in approximately 64 markets and are looking to expand further using a new sales force mapping tool [80][81] Question: What is the plan for opening new offices in the real estate division? - Management clarified that they do not have brick-and-mortar offices but focus on hiring salespeople to penetrate markets [94]

Revenue Growth - Property Management revenues increased by approximately $2.8 million, representing an 8.2% growth, primarily due to higher billing rates[11] - Gross profit for the Property Management segment rose by approximately $0.7 million, or 4.8%, despite a decline in permanent placement business[12] - Professional revenues increased by approximately $12.1 million, or 9.2%, with Horn Solutions and Arroyo Consulting contributing a combined total of $28.9 million[15] Expenses and Financial Position - Interest expense, net increased by approximately $3.7 million, primarily due to higher debt balances related to acquisitions and rising interest rates[16] - Selling, general and administrative expenses increased by $2.3 million, with selling expenses accounting for approximately 78% of this increase[13] Cash Flow and Working Capital - Cash provided by operating activities was $15.1 million, compared to a cash usage of $5.6 million in the prior year[20] - The company reported a working capital deficit of $14.6 million as of October 1, 2023, compared to a positive working capital of $48.0 million on January 1, 2023[20] - The company is focused on opening new markets and believes cash generated from operations will meet working capital needs for at least the next twelve months[19] Financing and Borrowing - The Revolving Facility allows borrowing up to $35.0 million, with a term loan commitment of up to $30.0 million, which has been fully funded and repaid[23] Operational Adjustments - The company has implemented a pricing model adjustment to mitigate the impacts of inflation on its operations[30]

BGSF, Inc. (NYSE:BGSF) Q2 2023 Earnings Conference Call August 10, 2023 9:00 AM ET Company Participants Sandy Martin - Three Part Advisors Beth Garvey - Chair, President and CEO John Barnett - CFO Conference Call Participants Jeff Martin - ROTH Capital Howard Halpern - Taglich Brothers Michael Taglich - Taglich Brothers Operator Good morning. Welcome to the BGSF Inc. Fiscal 2023 Second Quarter Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. As a reminde ...

You can identify these and other forward-looking statements by the use of words such as "aim," "potential," "may," "could," "can," "would," "might," "likely," "will," "expect," "intend," "plan," "predict," "ongoing," "project," "budget," "scheduled," "estimate," "anticipate," "believe," "forecast," "committed," "future" or "continue" or the negative thereof or similar variations. Where You Can Find Other Information The accompanying notes are an integral part of these unaudited consolidated financial statem ...

Financial Data and Key Metrics Changes - Total revenues for the first quarter were $75.3 million, representing a 9.9% increase compared to the prior year quarter [20][72] - Gross profit margins expanded by 140 basis points to 35.6% compared to the prior year quarter [8][72] - Adjusted EBITDA for the first quarter was $4.3 million, up from $3.9 million in the prior year quarter [21] - Adjusted earnings per diluted share decreased to $0.16 from $0.23 in the prior year quarter, primarily due to higher interest expenses related to acquisitions [21][62] Business Line Data and Key Metrics Changes - The Real Estate segment revenue increased by 9.6% compared to the prior year quarter [20] - The Professional segment revenue increased by 10.1%, including incremental revenue from the Horn Solutions acquisition; however, excluding Horn Solutions, the Professional segment was down 5.9% [20][38] - Professional gross profit margin grew by 130 basis points to 32.9%, while Real Estate gross profit margin increased by 150 basis points to 39.9% [8] Market Data and Key Metrics Changes - The customer base remains consistent, with some buying and selling activity among customers; however, growth is seen in newly opened markets [3] - Some markets in the U.S. are rebounding post-COVID, while others are slower to recover [3] Company Strategy and Development Direction - The company is focused on four strategic initiatives for 2023, including M&A growth, rebranding, process improvements, and shared services [2] - The transition to a single brand, BGSF, is expected to enhance brand power and reduce market confusion [2][22] - The company aims to expand its offerings globally and is actively seeking accretive acquisitions to enhance its client base and expertise [63] Management's Comments on Operating Environment and Future Outlook - Management noted longer decision-making times in the selling cycle, impacting the Professional segment, but solid demand for ERP and cloud migration services persists [19] - The company expects revenue seasonality to normalize, with consulting projects ramping up in the second quarter [10] - There are anticipated macro headwinds on the Professional side, but high-value consulting and managed services are expected to remain resilient and grow in 2023 [10] Other Important Information - The company reported a non-cash charge of $22.5 million related to rebranding and intangible asset impairment, negatively impacting net income [61] - Accounts receivable totaled $62.5 million, with a working capital ratio strengthening from 2.7 to 2.9 [62] Q&A Session Summary Question: Can you discuss the gross margin profile of the recent acquisition of Arroyo and any seasonality in their business? - Management indicated that Arroyo's gross margin profile aligns with the rest of the business and that there is no significant seasonality in their project-driven assignments [24] Question: What type of activity has started regarding cross-selling after the Horn acquisition, and how is growth in the Real Estate segment being driven? - Management noted that cross-selling activities are in progress, and growth in the Real Estate segment is coming from both existing and new customers [44] Question: What is the growth potential for the Royal acquisition, and how easy is it to scale that business? - Management expressed optimism about the growth potential for Royal, highlighting strong customer demand and readiness to introduce Royal to the existing client base [46]

On March 21, 2022, the Company sold substantially all of the assets and certain liabilities of InStaff to Sentech Engineering Services, Inc. ("Sentech") for a sale price of approximately $30.3 million cash, subject to customary sales price and working capital adjustments specified in the purchase agreement. The purchase agreement provided for deferred consideration of $2.0 million, which was received by April 3, 2023. The sale resulted in an original pre-tax gain on sale of discontinued operations of $17.3 ...